The boom in the AI industry. As a participant in the fields of speech recognition and conversational AI, SoundHound may benefit from the market's optimistic sentiment towards generative AI such as ChatGPT, even though its technological approach is different from that of companies like OpenAI. Regarding revenue growth expectations, SoundHound's revenue in 2023 was approximately $45 million, with a year-on-year growth of 47%. The market may expect it to maintain rapid growth in the coming years (for example, with a compound annual growth rate of 30%-50%). There is an expectation of turning a profit. The company has not been profitable yet (with a net loss of approximately $89 million in 2023), but the market may bet that it can reduce costs and improve its gross profit margin (currently around 70% or more) through scaling up. Strategic cooperation and customer expansion. Its cooperation with NVIDIA and automobile manufacturers may be interpreted as a positive signal for the implementation of its technology.
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